Antwerp Facets Special Report

If there’s one place in the world you can speak of a big picture, it’s most certainly Shanghai. There are many other cities that feature similar megalopolis features, of course, such as the massive number of skyscrapers and inhabitants per square meter, and the superlative economic characteristics, but Shanghai represents something else. It encapsulates the whole economic power and potential of China.

Shanghai, with the World Expo that is running in the city until the end of October, is the symbol of a quarter of the world's population saying: "From now on, count us in." And they are in.

The Chinese people's way of doing business seems to be based on the essence of long experience. They know that it takes time to acquire the skills to do something right.

This is one of the very important aspects that came out of the discussions and the meetings held during the Antwerp Week earlier this month. Driven by the idea of learning first, and only then setting up business models and distribution channels, the major Chinese players were particularly interested in partnerships. “Partnership is thus the magical word and the one through which the AWDC managed to organise one of the most important events ever held in China for the Antwerp diamond industry. It aimed at strengthening Antwerp’s place on the Chinese map.

During his speech at the Antwerp Diamond Day, which was held at the Belgian-EU pavilion on June 7, Lin Qiang, president of the Shanghai Diamond Exchange, quoted figures that show just how important Antwerp's diamonds are. "In 2009, our trading volume with Antwerp reached $1.5 billion, and during the first five months of 2010, we’re already recording an 84 percent increase compared to last year," he said.

If there’s one thing that is clear in Shanghai, it’s that diamonds and Antwerp are hot in China. And this is no polite window dressing make-over. According to local press reports, out of the many pavilions at the Expo the Belgian-EU one is one of the top five visited. The fact that people are attracted by the Belgian pavilion comes from a series of wisely combined elements.

The organisers managed to blend the most attractive and appealing aspects of the Belgian tradition. The fact that every visitor gets a Belgian chocolate praline, or can buy a glass of Belgian beer or a cornet of frite (fries) are enough to create a buzz about the Belgium Pavilion. But the possibility of literally discovering the universe of diamonds, starting with its history, through diamond polishing, up to the chance of even buying an Antwerp certified diamond is unique. Where but from the Belgian-EU pavilion you can leave with a stone that represents the token of love you have for someone special? Furthermore, the possibility offered to Chinese people to win six diamonds a week is certainly helping to make Antwerp diamonds even more popular.

There were even reports about a Chinese woman visiting the Belgian-EU pavilion a few weeks ago with her husband. When they were in the diamond corner, she insisted that he buy her a diamond, but he evidently refused to do so. After a series of apparently unsuccessful attempts to convince him, she began beating he husband, repeating her demand. The husband presumably survived the onslaught, but this was a clear indication of the importance diamonds have in China.

What’s so special about Antwerp diamonds that make them an essential item for the Chinese market? And do Antwerp diamonds have an edge over diamonds from other countries?

Basically, if well cut, nobody should be able to tell the difference between an Antwerp diamond and any other. So why mention Antwerp diamonds at all? The answer was given by several major Chinese players who explained that what they really needed was the Antwerp brand. "People must understand that we’re new in the business in a way,” one stated. “We don’t have decades of experience in marketing models or feed-back in that sense. For a long time De Beers was doing it, helping the various local and national players sell to the end-users. But from the moment they stopped, there has been an empty seat.

"Since that moment, we’ve been looking for a business and marketing partner, which is why, when we discovered that the AWDC was willing to supply us with exactly what we were looking for, we became very enthusiastic. Furthermore, the Antwerp brand itself is very important for us as Chinese in general are fond of European brands when it comes to luxury goods. You can’t really sell U.S. made diamonds, or Dubai or even Mumbai cut diamonds. Only Antwerp diamonds have the feel and involve the centuries-old experience we’re trying to convey. So, in that way, we absolutely need Antwerp."

Another aspect of the importance of Antwerp-sourced goods for Chinese diamantaires is that of legality. It was obvious that after a tax reduction on imported diamonds to 4 percent from 17 percent, the Chinese government wouldn’t tolerate fraudulent imports of diamonds. Therefore, they were eager for the Shanghai Diamond Exchange to sign a strategic business agreement with a major distribution centre with a modus operandi  for which Antwerp is famous: transparency. This is what Qiang also said in his speech: "In the framework of the Diamonds Love Antwerp agreement, the Diamonds Love Antwerp certificate should be implemented as soon as possible, in order to increase the share of legally imported diamonds."

After having invested up to € 125,000 in participation fees, what is the impression of the Antwerp based companies that have been exhibiting goods and sharing their know-how at the Expo since it opened on May 1?

On the one hand, they are thrilled by the experience. Raphael Rubin of Rubin & Zonen said: "Participating in such an event is very exciting, and it’s very important that Antwerp has managed to be involved to such an extent at the Expo."

Maurice Tawil, of Taché Diamonds, added: "If we’re here, it’s also because we felt it was essential for Antwerp to be duly represented here." Ann Van Loveren, of 3D Diamonds, said: "We have great expectations for our proprietary Antwerp Twin diamond cut, and we hope the Expo will help us give it a boost."

The other diamond companies taking part in the diamond corner are S. Muller & Sons, Silk Road Diamonds, Gassan, Rosy Blue, Eurostar, and RDH. Diamonds, The Flanders Collection, Pluczenik, Barsamian, Beladamas, Luc Vets Diamant, Drybooms Diamonds, Safdico and Mickey Weinstock.

Meanwhile, HRD Antwerp is demonstrating the unique position of Antwerp as an innovator, featuring state-of-the-art equipment and techniques based on scientific research. Innovation is indeed the key word as illustrated by the impressive diamond cuts on display, such as a copy of the famous Lesotho Promise, a rough diamond originally weighing 603 carats that was skilfully analysed and cut in Antwerp, alongside a magnificent 100-carat fancy yellow diamond, a 28.46- carat rough diamond, a 161.54-carat black diamond and many more.

It is important to remember that the Shanghai Expo is not purely about generating profit. The true value of the Expo is calculated figuring in more than sales made in Shanghai, but also taking into account the relationships established that lead to joint commercial ventures and many trade opportunities between Antwerp and Shanghai.

The Antwerp Diamond Day was the highlight of the Antwerp Week. This is where the Antwerp diamantaires met some of the leading Chinese diamantaires and retailers, and were able to develop business relationships. "It’s a great opportunity for us to get in contact with the Antwerp diamond business. Antwerp diamonds are considered exceptional," said M. Shen, from Zhejaing King Jodear Jewelry & Watch Co. Ltd, and owner of about 30 shops in China.

The various participants were unanimous that having the opportunity to talk to a panel of major players from both sides was a vital part of the Antwerp Diamond Day. It was also stressed that the signing ceremony organised during the Antwerp Diamond Day by the newly formed HRD Belgium Association China for HRD Antwerp alumni, was a success.

Seen from a Chinese point of view, Antwerp’s added value is embodied in the common interest of both Chinese and Belgian companies in pursuing business, Antwerp’s supremely  high degree of expertise, its substantial  financial power, its critical mass of both rough and polished, its important resell channel, and, of course, the powerful Antwerp diamond brand.